The much-talked about relief for PSU Banks appear convincing, says Gautam Chhaochharia, Head-India Research at UBS Securities. He admits it is difficult to predict if private sector best practices will be replicated by the PSU Banks five years down the line, but the direction is definitely positive.

Indian Foreign Secretary Subrahmanyan Jaishankar announced the plans at the end of a two-day visit to the UAE by Prime Minister Narendra Modi, which focused on both business ties and national security.